Thursday, April 12, 2012

IMF to start review of Romania aid deal April 24

(Reuters) - An International Monetary Fund mission will review Romania's compliance with a precautionary aid deal from April 24, the Washington-based lender said on Thursday.

Bucharest completed a 20 billion euro bailout programme last year and the new two-year IMF package, which it will only draw on if needed, provides an important emergency buffer for the European Union's second-poorest economy.

The IMF has cut Romania's 2012 economic growth estimate to 1.5-2 percent from about 2.3 percent due to fallout from the euro zone debt crisis.

Current IMF mission chief Jeffrey Franks said last month the government has limited room to ease its austerity programme by raising public sector wages or via minor tax cuts, while maintaining its fiscal deficit target.

Franks will be joined on the mission, which will spend two weeks in Bucharest, by his successor Erik De Vrijer, a regional IMF spokesman said. (Reporting by Ioana Patran; Editing by John Stonestreet)

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